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Informist, Saturday, Oct. 18, 2025

 

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--RBL Bank Jul-Sept net profit INR 1.78 bln vs INR 2.23 bln yr ago 
--RBL Bank Jul-Sept total income INR 44.40 bln vs INR 44.58 bln yr ago 
--RBL Bank Jul-Sept provisions INR 5 bln vs INR 6.18 bln yr ago 
--RBL Bank Jul-Sept gross NPA 2.32% vs 2.78% qtr ago 
--RBL Bank Jul-Sept net NPA 0.57% vs 0.45% qtr ago 
--RBL Bank Basel-III capital adequacy ratio 14.71% as of Sept 30
--RBL Bank board OKs raising up to INR 268.53 bln from Emirates NBD Bank 
--RBL Bk OKs raising funds from Emirates NBD Bk via pref issue of shrs 
--Emirates NBD Bk to acquire 60% stake in RBL Bank post pref issue of shrs
 

 

By Kabir Sharma

 

MUMBAI - RBL Bank's net profit fell for the fifth quarter in a row in Jul-Sept as the bank continues to navigate its way out of the stress in its microfinance portfolio. Loss from treasury operations due to mark-to-market losses on unlisted equities also hit the bottom line of the bank. "(net profit is) impacted by MTM of 44 crore (INR 440 million) on unlisted equities basis their latest audited financial statements," the bank said in a press release.

 

The private sector lender reported a net profit of INR 1.79 billion, down 20% on year. Sequentially, the net profit fell almost 11%. The fall in net profit was more than the 6% brokerages had expected. Shares of the bank had Friday ended 2.4% lower at INR 299.50 on the National Stock Exchange.

 

The treasury segment of the bank reported a loss of INR 77.9 million, weighing on the bottom line. The net interest income of the bank for the September quarter fell 4% on year to INR 15.51 billion in the reporting quarter. Net interest margin of the bank improved by a basis point to 4.51% from the previous quarter. 

 

Credit cost of the bank inched up by 4 bps from the previous quarter to 0.54%, reflecting the worries about asset quality. However, a 22 bps fall in slippage ratio hinted at some improvement in the microfinance portfolio. Net slippage ratio of the bank improved to 0.77% in the Jul-Sept quarter. Reflecting the slight uptick in asset quality, gross non-performing assets ratio of the bank improved to 2.32% from 2.78% a quarter ago. Net NPA ratio fell to 0.57% from 0.45% a quarter ago.

 

"The growth in our JLG (joint liability group) business is coming back on the back of improving asset quality trends and we expect it to further improve in H2 FY26 (Oct-Mar). During Q2 FY26 (Jul-Sept), slippages in the JLG portfolio have moderated further," R. Subramaniakumar, managing director and chief executive officer of the bank, said. 

 

Provisions of the lender fell 19% on year to INR 5 billion in the quarter ended September, supporting the bottom line. Sequentially, the provisions rose by 13%. Provision Coverage Ratio including technical write off was 92.7%. Operating expenses fell 5% on quarter to INR 17.55 billion. Cost to income ratio was 70.7% in Jul-Sept down from 72.4% a quarter ago. 

 

Advances of the bank grew by 14% on year and 6% on quarter to INR 1.00 trillion as of Sept. 30. Retail advances grew by 10% on year to INR 601.31 billion despite 9?ll in unsecured retail advances. Secured retail advances grew 30% on year and unsecured retail grew 1% sequentially. Wholesale advances grew by 22% on year to INR 403.97 billion. Commercial banking grew at 34% on year. Overall deposits grew by 8% on year and to INR 1.17 trillion. Current account savings account deposits grew by 3% on year to INR 371.69 billion and CASA ratio was 31.9% for Jul-Sept.

 

Total capital adequacy ratio of the bank was 15.02% as of Sept. 30 and common equity tier 1 capital ratio was 13.51%. On Saturday, RBL Bank's board approved selling 60% stake in the lender to Emirates NBD Bank for INR 268.50 billion.  End

 

Edited by Ashish Shirke

 

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